A substantial portion of inventory owned by Matrix Defense Contractors (MDC) was recently destroyed when fighter pilot lost control of his aircraft causing it to crash into one of the hangars on the companys runway. Fortunately, the pilot ejected in time to avoid any injury. However, MDC still had a big mess to clean up including the loss of some of its accounting records. MDC must estimate the loss from the crash for insurance reporting and financial statement purposes. MDC must estimate the loss from the crash for insurance reporting and financial statement purposes. MDC uses the periodic inventory system. The following accounting information was recovered from the damaged records:

Beginning inventory	$ 168,000
Purchases before crash	450,000
Sales before crash	550,000

The value of undamaged inventory counted was $110,000. Historically, MDCs gross margin percentage has been approximately 20 percent of sales.

Required:

Estimate the following:

1. Gross margin in dollars.
2. Cost of goods sold.
3. Ending inventory.
4. Amount of lost inventory.